Irrespective of what product/service you’re selling, the pricing will have a direct impact on the success of your business. Hence, it is important to choose your pricing strategy carefully. Though pricing strategies may appear complex, some basic rules to finalize your pricing are pretty simple. Your price should at least cover your basic production and distribution cost. You can research the market to find out the profit percentage charged by your competitors, and decide to charge similar, lower or higher according to your product quality. You should review your prices regularly and keep a close watch on the market to see the impact of your pricing strategy on your sales. [ cost effective graphic designers chennai @godparticles]
Positioning impacts pricing
In the earlier steps, we found our target market and created a buyer persona. You will finalize your product positioning according to both these factors, and it will then have a direct impact on pricing. For example, if you want to position your product as a premium product for females of age 35-55 years of age, you cannot price your product cheaper than the existing products in the market.
A study by the CMO council reveals that 71% of the internet users in the U.S. were influenced by coupons and discounts when making their purchase decisions. In order to encourage trial for new customers you can offer limited seasonal coupons and sign-up discounts offers. You can use free graphic design tools like Canva if you want to print out your coupons. If your business requires online booking system like yoga classes, fitness studio, venue or resource rentals, photography studio, etc. then you can use a system like SuperSaaS and create your own digital coupons to offer discounts to customers while booking with you. [ cost effective graphic designers chennai @godparticles ]
Whether it’s about watching a new TV series or buying a new watch, we trust people closest to us. That’s the reason referrals work great for any business. If you have happy customers, request them to refer you to at least 3 new customers and incentivize these referrals with some complementary products or services. You can also choose to offer referral bonus or a part of sales from the referral to your existing customers. This will help you grow at a much faster pace and acquire long-term customers.
Offer seasonal discounts
It’s a proven fact that customers tend to spend more in the holiday or festival time. You can offer seasonal discounts to promote your products and encourage new customers to try out your product/service. A great way to generate excitement around your seasonal discounts is to add a seasonal flavor to your packaging or your promotional material. For example, if you’re promoting a Christmas discount you can add Christmas decorations or Santa Claus figures on your communication to match the festival. [cost effective graphic designers chennai @godparticles]
Research payment methods
The digital economy is growing and people are becoming more and more comfortable with paying online. Accepting online payments is advantageous for you since you get paid instantly in your bank account. If you’re conducting your business online, then you can research payment methods like PayPal, Strip, Mollie to accept payments from your customers. Most of these payment providers also offer multi-currency support which works great when you expand your business to other areas.
[cost effective graphic designers chennai @godparticles]
Create pricing rules or offer transparent pricing
If your service is in-demand more on some days and less on other days, a great way to get more profit is to create pricing rules and offer varied pricing. In this way, you can encourage customers to book you in the off-peak hours and will also help you generate more revenue from customers who do book your services in the peak hours. However, this model is not suitable for all types of businesses.
If you offer a product in the market which goes through a distribution channel, then it’s better to offer transparent pricing with no hidden-costs. Customers appreciate honest and transparent communication and it helps them build trust in your brand. [cost effective graphic designers chennai @godparticles]
Aticles_Source : JustCreative